Limited Liability Partnership Contract for Germany

Limited Liability Partnership Contract Template for Germany

A German Limited Liability Partnership Contract (GmbH & Co. KG) is a sophisticated legal document that establishes a hybrid business structure unique to German law, combining a limited liability company (GmbH) as the general partner with a limited partnership (KG). This document governs the relationship between partners, outlines capital contributions, defines management structures, establishes profit-sharing arrangements, and sets forth operational procedures. It complies with German partnership law, commercial code (HGB), and limited liability company law (GmbHG), providing a framework that offers both liability protection and tax advantages.

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What is a Limited Liability Partnership Contract?

The Limited Liability Partnership Contract for a German GmbH & Co. KG is essential for businesses seeking to establish a hybrid corporate structure that combines liability protection with tax efficiency. This document type is commonly used in Germany when founding or restructuring businesses that require both the professional management and liability protection of a GmbH (limited liability company) with the tax benefits and flexibility of a KG (limited partnership). The contract must comply with German corporate and partnership laws, including the Handelsgesetzbuch (HGB) and GmbH-Gesetz. It details partner relationships, capital structures, management rights, profit distribution, and operational procedures, making it particularly suitable for family businesses, professional services firms, and medium to large enterprises seeking optimal legal and tax structures.

What sections should be included in a Limited Liability Partnership Contract?

1. Parties: Identification of the GmbH as general partner and all limited partners

2. Background: Context of the partnership formation and its business purpose

3. Definitions: Key terms used throughout the agreement

4. Formation and Name: Establishment of the GmbH & Co. KG and its registered business name

5. Registered Office: Official registered address and place of business

6. Purpose of Partnership: Detailed description of business activities and objectives

7. Duration: Term of the partnership and conditions for continuation

8. Capital Contributions: Initial capital contributions of all partners and terms for additional contributions

9. Partnership Shares: Distribution of ownership interests among partners

10. Management and Representation: Management structure, powers of the GmbH as general partner, and decision-making processes

11. Partners' Rights and Obligations: Detailed rights, responsibilities, and obligations of all partners

12. Profit and Loss Distribution: Method of calculating and distributing profits and losses

13. Accounts and Records: Requirements for financial reporting and record-keeping

14. Transfer of Partnership Interests: Rules and restrictions regarding the transfer of partnership shares

15. Termination and Liquidation: Conditions and procedures for partnership termination and asset distribution

16. Notices: Communication requirements and procedures between partners

17. Governing Law: Confirmation of German law application and jurisdiction

18. Severability: Provisions for maintaining validity if parts are found invalid

What sections are optional to include in a Limited Liability Partnership Contract?

1. Non-Competition: Restrictions on partners' involvement in competing businesses, optional but recommended for partnerships with specific market focus

2. Intellectual Property Rights: Provisions regarding IP ownership and usage, necessary when IP is significant to the business

3. Additional Financing: Framework for future capital raising, useful for partnerships planning expansion

4. Advisory Board: Structure and powers of an advisory board, beneficial for larger partnerships

5. Deadlock Resolution: Procedures for resolving management deadlocks, important for partnerships with equal voting rights

6. Key Person Insurance: Requirements for life/disability insurance on key partners, relevant for partnerships dependent on specific individuals

7. Confidentiality: Detailed confidentiality obligations, important when dealing with sensitive business information

What schedules should be included in a Limited Liability Partnership Contract?

1. Schedule 1 - Initial Capital Contributions: Detailed list of all partners' initial capital contributions

2. Schedule 2 - GmbH Articles of Association: Copy of the general partner GmbH's articles of association

3. Schedule 3 - Business Plan: Initial business plan and financial projections

4. Schedule 4 - Management Procedures: Detailed procedures for management and decision-making

5. Schedule 5 - Profit Distribution Formula: Detailed calculations for profit and loss allocation

6. Appendix A - Partner Contact Information: Complete contact details for all partners

7. Appendix B - Special Rights and Obligations: Any special arrangements or rights granted to specific partners

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Professional Services

Manufacturing

Real Estate

Trading and Commerce

Technology

Family Businesses

Investment and Finance

Construction

Consulting

Healthcare

Retail

Hospitality

Relevant Teams

Legal

Finance

Corporate Governance

Tax

Compliance

Executive Leadership

Business Development

Corporate Affairs

Risk Management

Company Secretariat

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

Legal Counsel

Corporate Lawyer

Tax Director

Business Development Manager

Company Secretary

Partnership Manager

Compliance Officer

Finance Director

Corporate Governance Officer

Business Owner

Entrepreneur

General Counsel

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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